Suppose the Equilibrium Price of a Physical Examination ("Physical") by a Doctor

question 261

Multiple Choice

Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling,

• A) the demand curve for physicals shifts to the right.
• B) the supply curve for physicals shifts to the left.
• C) the quantity demanded of physicals increases and the quantity supplied of physicals decreases.
• D) the number of physicals performed will increase.

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Definitions:

Symbolic Notation

The use of symbols to denote variables, constants, operations, functions, and other mathematical or logical entities.

Atomic Components

Basic, indivisible components or elements of a system or structure.

Disjunction

A logical operation that yields a true statement if at least one of its component statements is true.

Tautological Disjunct

A component of a logical statement that repeats the same information in different words, making it unconditionally true.